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Former SafeMoon CEO Braden Karony has been convicted on multiple charges, including securities fraud and money laundering, in a $200M crypto scam. Prosecutors revealed he siphoned investor funds for luxury purchases while misleading the public about locked liquidity pools. The case highlights growing regulatory scrutiny in the DeFi space.
- Karony misled investors about SafeMoon’s 'locked' liquidity pools, secretly siphoning $200M for personal luxuries like Utah homes and Audi R8s.
- International law enforcement (IRS-CI, FBI, HSI) uncovered the fraud by tracking crypto movements across pseudonymous wallets and exchanges.
- The case underscores regulatory risks in DeFi, with Karony’s sentencing (up to 45 years) pending and two co-conspirators still facing justice.
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